After an eight-day streak of advances for the broad market index, traders turned their attention to Treasury yields, and S&P 500 futures saw no movement on Friday.
Futures for the S&P 500 decreased slightly, while those for the Nasdaq 100 declined by almost 0.2%. Futures linked to the Dow Jones Industrial Average increased by 0.1%, or 49 points.
Following the digital advertising company’s poor sales projection for the fourth quarter, Trade Desk fell by almost thirty percent. In another development, Plug Power, a firm that makes hydrogen fuel cells, collapsed by 25% due to a larger-than-anticipated third-quarter loss and a revenue shortfall.
The S&P 500’s 0.8% decline on Thursday ended its longest winning run since 2021. The nine-day winning streak, which was also the longest run of advances the Nasdaq Composite had seen in two years, came to an end when it dropped 0.9%. The 30-stock Dow fell by almost 0.7%.
After Federal Reserve Chair Jerome Powell stated that the institution is “not certain” it has done enough to combat inflation, stocks began to decline.
He read prepared remarks at an International Monetary Fund event. “The Federal Open Market Committee is committed to achieving a posture of monetary policy that is sufficiently restrictive to bring inflation down to 2 percent over time; we are not confident that we have reached such a stance,” he added.
Thursday’s steep increase in bond yields put pressure on stocks. The benchmark rate on 10-year Treasury notes increased little on Friday.
Kevin Simpson, the CEO and chief investment officer of Capital Wealth Planning, stated on CNBC’s “Closing Bell” on Thursday that “the bond market itself is often a lot wiser than the stock market when it comes to projecting rates.”
Source (CNBC)
